Shares on the Dubai bourse extended gains on Monday, buoyed by shares in Emaar after the developer announced its intention to proceed with the sale of existing shares in Emaar Malls Group.

The Dubai benchmark stock index, DFMGI, surged 1.54% or 77.82 points, its highest level since June 2.

Shares in Emaar climbed 4.48% to AED 11.65, its highest level in months, serving as the main boost to the index.

 “The Offering will be made available to individual investors (30% of the Offering), as well as qualified institutional investors (70% of the Offering), with 10 per cent being targeted for preferential allocation to existing Emaar Properties shareholders as at 10 September 2014. Emaar Properties expects to sell at least 15 per cent of EMG as part of the Offering,” the company said in a press release on Sunday.

“Investors are back to the market after a long vacation. Emaar was the main catalysts for the market rally on Monday, and it could extend support to the index in the few coming session,” said Nedal Khouly, head of Gulf Research in Nemma Investment.

Meanwhile, shares in Arabtec lost 1.87% amid uncertainty about Abaar next step to increase its stake in the company.

Turnover hit AED 2.75 billion, through the trade of 635 million shares.